- Built in 2002, Cascade Meadows is centrally located near the city’s main thoroughfare, offering its resident excellent access to major highways and employers as well as dining, shopping and recreational amenities.
- The strategy for this investment was to acquire and renovate a bank-owned asset that was chronically undermanaged and that had significant deferred maintenance.
- Virtú planned to improve management through superior cost controls, capture market rents, and adopt a more sophisticated unit pricing program.
- Virtú completed a $1,026,845 renovation ($10,586/unit) as part of the value-add strategy.
- Our construction team took on the job of tearing off the existing defective vinyl siding and repairing dry rot, followed by repairs, re-wrapping and re-siding each building in the complex.
- Virtú also did a significant clubhouse renovation that transformed the prospective tenant’s first impression of the complex.
- The result of the improvements was an ability to drive market rent increases above our projections, and procure a buyer who was interested in a pride-of-ownership asset.
- The combination of the current low interest rate environment and this successful business plan allowed us to achieve a premium price in a tertiary market.
- Purchased in March 2013 and sold in November 2014, the investment returned an IRR of 24% (net to investors) and an equity multiple of 1.44x.
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